Inflation concerns were re-utilized during US morning hours Thursday and sent risk assets-crypto among them-sharp lower.
Producer Price Index in July (PPI) Roast 0.9% and jumped past estimates for 0.2% and 0.0% in June. On an annual basis, PPI was higher with 3.3% against forecasts for 2.5% and June’s 2.4%.
Core PPI, which excludes food and energy, also increased 0.9% in July, which far exceeded 0.2% expected and 0.0% in June. CORE CPI year-over-year rose 3.7% against 2.9% expected and 2.6% in June.
Already good from a record high hit overnight over $ 124,000, Bitcoin
Tumbled under $ 119,000 on the news. Ether (Eth) dropped almost 4% to $ 4,550. Others recently red-hot Altcoins like Solana and XRP were hit the same way.
Data on fresh labor market data provided no relief, with initial unemployed requirements for the week, which ended on August 9 of 224,000, slightly below the expected 228,000 and continued claims of 1.95 million. The still tight labor market combined with the strong PPI readings reinforced the view that Fed can keep interest rates elevated for a longer period of time to tame inflation.
According to the CME Fedwatch, the previous 100% chance of a September rent cut to 96% in the wake of the fresh data.
In traditional markets, the US stock index has slid 0.5%, the dollar wins space, and the 10-year-old US Treasury went higher by five basic points to 4.25%.
